Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

Document Classification

In banking, document classification typically refers to the process of organizing information into logical categories. Classifying by document type (i.e., loan agreements, insurance documents, vendor invoices, etc.) is especially beneficial for financial institutions.

Document Classification Workflows in Banking

Information management practices vary, but financial institutions often rely on one or more of following classification workflows:

  • Paper-based workflows, such as adding a borrower’s financial statement into the correct “tab” of a commercial loan file.
  • Email-based workflows, such as saving all vendor receipts in a dedicated inbox folder.
  • Network drive workflows, such as storing all applicants’ resumes in a centralized location on the financial institution’s network drive.
  • Enterprise content management (ECM) system workflows, such as using metadata from a loan origination system (LOS) to identify the type of document. Metadata could also be assigned with the help of AI (artificial intelligence), OCR (optical character recognition), or manual entry by a knowledge worker. 

Benefits of Document Classification

Implementing effective document classification workflows can bolster internal collaboration and unlock efficiencies due to:

  • Streamlined access to information: Rapidly filtering through thousands of electronic records and identifying specific information makes life easier for employees. Accurate classification is also a precursor for enabling a two-way document exchange with account holders.
  • Reduced manual effort: Some ECM systems, such as FASTdocs from Alogent, offer prebuilt workflow capabilities that reduce or eliminate steps in downstream processes. For example, classifying an invoice and assigning relevant metadata can initiate a routing and approval workflow that bypasses manual sharing via email or interoffice mail.
  • Automated retention rules: Not every document at a bank or credit union follows an identical retention schedule. Leveraging automated retention rules in tandem with a scalable document classification workflow offers a viable solution to this challenge. For example, FASTdocs users can automatically apply template-specific retention rules as documents enter the system.

Explore FASTdocs and modernize your financial institution’s document classification workflow. Access additional banker resources on Alogent’s Innovation Hub.

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